World Economy

Mexico Auctions Off $200m

Mexico Auctions Off $200mMexico Auctions Off $200m

 Mexico’s central bank auctioned off $200 million Friday to shore up the peso as it neared a historic low against the US currency, AP said. The peso came under new pressure on news of increased job creation in the United States, suggesting an improving US economy. Analysts forecast that could lead to a possible rise in US interest rates, an expectation that creates greater demand for dollars in Mexico. The central bank announced in December that it would hold daily dollar auctions of $200 million whenever the peso sheds 1.5 percent or more of its value from the previous day. Friday was the second time since then that the auction mechanism was triggered.